About Record Labels
The music of legendary artists like the Beatles, Elvis Presley and the Rolling Stones would not have reached the world without record labels. While club gigs and word of mouth can help small bands succeed, record labels bring instant exposure to millions of consumers for aspiring musicians. Record labels are businesses that recruit musicians, produce albums, create buzz for new songs, and provide revenue streams for artists of all experience levels.
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History
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The origins of record labels go back to the 19th century with the founding of Columbia Records in 1888. Labels like EMI (1931) and Decca Records USA (1934) were established as the radio industry began to thrive after the 1920's. These early labels were involved in creating record players and radios along with the primary role of pressing records.
The popularity of rock and roll after World War II allowed record labels to grow alongside urban radio stations. Sun Records was a Memphis label that produced records for Elvis Presley, Johnny Cash and other musicians distributed throughout the United States. Record labels and radio DJs were linked in the payola scandal of the 1950s and 1960s when DJs were accused of playing music based on bribes from label representatives. The record industry has changed rapidly since the 1950's with independent labels and online music producers challenging the Big Four labels in terms of sales. Artists like Trent Reznor of Nine Inch Nails have opted for free online music as well as independent production to take larger profits from their albums.
Considerations
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Record labels have to think about distributing music on multiple platforms and continuing the search for new artists even as established musicians bring in repeat customers. While major labels have been reticent about using the Internet to sell their music, indie labels and individual musicians have leaked music to take advantage of the viral nature of file sharing. The next generation of record labels will rely on concerts, traditional outlets and online stores to sell albums. These record labels will also need to pour through MySpace music pages and local clubs to find the latest acts that will draw in new listeners. New artists and bands are locked into exclusivity agreements that keep rosters intact for several albums.
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Types
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The recording industry has been split in recent years between the Big Four labels and countless independent labels. The Big Four of the music industry include Warner, EMI, Sony and Universal. These major labels have struggled in recent years due to illegal file downloading, decreased attendance at concerts and the increased competition from online music Websites. Independent labels like Sub Pop and Matador were founded as alternatives to the Big Four. Smaller labels are able to build up loyal fan bases in college towns like Austin and Madison with small-scale tours and inexpensive albums. While indie labels are successful in small pockets, the Big Four remain dominant in terms of album sales due to agreements with retailers like Best Buy and Wal-Mart.
Features
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The typical recording label acts like a corporation by keeping every element of production and distribution in-house. Every label starts out by finding singers and bands through an Artists and Repertoire (A&R) department. These musicians are signed to exclusive agreements that outline the number of albums required, percentage of profits for all parties involved and ownership over intellectual property. Once an artist produces a new album through the record label, the label enlists designers and copy editors to create packaging materials including store displays and CD sleeves. Record labels may also get involved in producing concerts, scheduling high-profile gigs and creating soundtracks to promote young artists.
Identification
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Most record labels use clever logos and signature artists to create products that are easy for consumers to identify. The Warner Music Group's W symbol set against a blue backdrop or Universal's familiar globe logo can help loyal fans identify albums that they will enjoy. Indie labels often take liberties with unique fonts and cartoon images to set themselves apart from the Big Four labels. A major act can also help a record label develop a following in a competitive industry. The Big Four and indie labels are similar in their need to create brand recognition through a stable of good artists.
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Resources
- Photo Credit Photo by Leo Reynolds (Flickr)
